Financial Services Organisations on the Internet Market Assessment 2009
Key Note Publications Ltd, February 2009, Pages: 270
We believe that Internet applications in financial services organisations will be accelerated by the recessionary climate. The growth up to 2008 was fuelled by the competition between organisations with access to cheap money seeking to enter the UK market by offering good returns on Internet savings accounts, lending money to poor people or selling low-cost motor insurance.
From 2008/2009, the emphasis will be on cost-effectiveness and on traditional customer service. Those organisations that survive the `credit crunch' will have much lower cost-to-income ratios and tighter criteria for lending. They will only offer interest rates on savings that are lower than their profit margins. Many of them will be more closely regulated.
For these reasons, they will have to offer better-quality Internet access to their customers and will have to be closely concerned with their product portfolio. Internet access means that rapid change in product lines is possible, and customers can be informed of new offers speedily and cheaply.
In this Market Assessment report, we examine the retail banking market, the personal loans market and the building society movement. It looks at mortgage lending, general insurance, financial advice, individual investment and long-term insurance (pensions and life).
This report also includes the findings of our survey of a sample of Internet-using consumers, which showed that a high proportion were keen on using the Internet for their financial affairs.
Internet use to compare products before purchase was very popular, and respondents reported strong interest in savings and general insurance purchases over the Internet. They were concerned that more complex products should be the subject of face-to-face meetings. Individual products and services appealed differently to the young and the elderly, to the higher and lower social grades, and according to lifestyles.
Respondents were strongly concerned about Internet security, and this seems to be a major disincentive to using the Internet for financial services.
We believe that changes in computer and mobile-telephone technology, and in the capacity of the cable network for carrying broadband, will boost Internet use even more than imaginative development of consumer-oriented websites.
The Internet gives financial services organisations the opportunity to survive and grow through the recession
Executive Summary
1. Introduction
THE RESEARCH PROCESS
BACKGROUND
DEFINITION
2. Strategic Overview
MARKET DYNAMICS AND SEGMENTATION
The Economy
The Causes of the Recession
UK GOVERNMENT AID SCHEMES
Market Sectors
Retail Banking
Loan Providers
Building Societies
General Insurance
Mortgage Providers
Financial Advisers
Independent Investment
Pensions and Life Insurance
The Current Status of the Market
Retail Banking.
Loan Providers
Building Societies
General Insurance.
Mortgage Providers
Financial Advisers
Independent Investment
Pensions and Life Insurance
Market Size
Table 1: Estimated Total Number of UK Users of Financial Services Sites
on the Internet by Sector (million users), 2003-2008
Figure 1: Estimated Total Number of UK Users of Financial Services Sites
on the Internet (million users), 2003-2008
DISTRIBUTION
COMPETITIVE STRUCTURE
Retail Banking
Loan Providers
Building Societies
General Insurance
Mortgage Providers
Financial Advisers
Independent Investment
Pensions and Life Insurance
ADVERTISING
Table 2: Main Media Advertising Expenditure on
Selected Instant-Access Savings Products (£000), Year Ending June 2008
THE CONSUMER
Household Internet Access
Table 3: Households With Access to the Internet
— Great Britain and the UK (% and million), 2003-2008
Usage of Online Banking Services
Table 4: Internet Activities of Recent Internet Users in the UK by Age (%), 2008
Factors Affecting the Consumer
Population Change
Table 5: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007
Gross Domestic Product
Table 6: UK Gross Domestic Product at Current and
Annual Chain-Linked Prices (£m), 2003-2007
Inflation
Table 7: UK Rate of Inflation (%), 2003-2007
Unemployment
Table 8: Actual Number of Unemployed Persons in the UK (million), 2003-2007
Household Disposable Income
Table 9: UK Household Disposable Income Per Capita (£), 2003-2007
Consumer Confidence
Table 10: Nationwide Consumer Confidence Survey —
Spending Confidence Regarding Major Purchases and Household Goods
(% of respondents), May 2004 and August 2007-December 2008
Consumer Dynamics: Key Note’s Consumer Research
SECURITY PROBLEMS
MARKET FORECASTS
3. Retail Banking
BACKGROUND
MARKET SIZE
Table 11: Estimated Number of UK Users of Retail Banking Sites
on the Internet (million users), 2003-2008
Figure 2: Estimated Number of UK Users of Retail Banking Sites
on the Internet (million users), 2003-2008
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
DISTRIBUTION
WEB 2.0.
VIRTUAL UNIVERSES
Second Life
Entropia Universe
PAYMENT SYSTEMS
OUTSOURCING
THE SINGLE EURO PAYMENTS AREA AND THE PAYMENT SERVICES DIRECTIVE
CONTACTLESS CARDS
MOBILE BANKING.
Table 12: Adults in the UK Who Had Accessed the Internet
in the Past 3 Months by Type of Mobile Device Used (%), 2007 and 2008
THE ‘CREDIT CRUNCH’
CAPITAL MARKETS
IT STRATEGIC POSITIONING
4. Loan Providers
BACKGROUND
MARKET SIZE
Table 13: Estimated Number of UK Users of Loan Providers’ Sites
on the Internet (million users), 2003-2008
Figure 3: Estimated Number of UK Users of Loan Providers’ Sites
on the Internet (million users), 2003-2008
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
Secured Personal Loans
Table 14: Main Media Advertising Expenditure
on Secured Personal Loans by Brand (£000), Year Ending June 2008
Unsecured Personal Loans
Table 15: Main Media Advertising Expenditure on
Unsecured Personal Loans by Brand (£000), Year Ending June 2008
DISTRIBUTION
5. Building Societies
BACKGROUND
MARKET SIZE
Table 16: Estimated Number of UK Users of Building Societies’ Sites
on the Internet (million users), 2003-2008
Figure 4: Estimated Number of UK Users of Building Societies’ Sites
on the Internet (million users), 2003-2008
MARKET SHARES
Table 17: Leading UK Building Societies Ranked
by Group Assets (£m), Latest Financial Years
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
DISTRIBUTION
Table 18: Number of Branches Operated by Building Societies in the UK and
Number of Shareholders, Depositors and Borrowers (actual number and 000), 2003-2007
6. General Insurance
BACKGROUND
MARKET SIZE
Table 19: The Estimated Total UK General Insurance Market — UK Risks
— by Net Written Premiums (£m and index 2002=100), 2002-2008
Table 20: Estimated Number of UK Users of General Insurance Sites
on the Internet (million users), 2003-2008
Figure 5: Estimated Number of UK Users of General Insurance Sites
on the Internet (million users), 2003-2008
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
General Insurance (Generic)
Table 21: Main Media Advertising Expenditure on
General Insurance (Generic) by Brand (£000), Year Ending June 2008
Home Insurance
Table 22: Main Media Advertising Expenditure on
General Home Insurance by Brand (£000), Year Ending June 2008
Motor Insurance
Table 23: Main Media Advertising Expenditure on
General Motor Insurance (£000), Year Ending June 2008
DISTRIBUTION
7. Mortgage Providers
BACKGROUND
MARKET SIZE
Table 24: Estimated Number of UK Users of Mortgage Providers’
Sites on the Internet (million users), 2003-2008
Figure 6: Estimated Number of UK Users of Mortgage Providers’
Sites on the Internet (million users), 2003-2008
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
Table 25: Main Media Advertising Expenditure on
Mortgages (General Range) by Brand (£000), Year Ending June 2008
DISTRIBUTION
8. Financial Advisers
BACKGROUND
MARKET SIZE
Table 26: Estimated Number of UK Users of Financial Advisers’ Sites
on the Internet (million users), 2003-2008
Figure 7: Estimated Number of UK Users of Financial Advisers’ Sites
on the Internet (million users), 2003-2008
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
Table 27: Main Media Advertising Expenditure on
Independent Financial Advice (£000), Year Ending June 2008
DISTRIBUTION
9. Independent Investment
BACKGROUND
MARKET SIZE
Table 28: Estimated Number of UK Users of Independent
Investment Sites on the Internet (million users), 2003-2008
Figure 8: Estimated Number of UK Users of Independent
Investment Sites on the Internet (million users), 2003-2008
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
Table 29: Main Media Advertising Expenditure on
Portfolio Management by Brand (£000), Year Ending June 2008
DISTRIBUTION
10. Pensions and Life Insurance
BACKGROUND
MARKET SIZE
Table 30: Estimated Number of UK Users of Pensions and
Life Insurance Sites on the Internet (million users), 2003-2008
Figure 9: Estimated Number of UK Users of Pensions and
Life Insurance Sites on the Internet (million users), 2003-2008
CONSUMER TRENDS
MARKETING ACTIVITY
ADVERTISING
Life Protection
Table 31: Main Media Advertising Expenditure on
Life Protection by Brand (£000), Year Ending June 2008
General Pensions
Table 32: Main Media Advertising Expenditure on
General Pensions by Brand (£000), Year Ending June 2008
DISTRIBUTION
11. An International Perspective
MARKET DEVELOPMENTS IN THE US
E-Mail
Search-Engine Optimisation and Marketing
US Policy
EMERGING MARKETS
THE GLOBAL MARKET
12. PEST Analysis
POLITICAL FACTORS
ECONOMIC FACTORS
SOCIAL FACTORS
TECHNOLOGICAL FACTORS
13. Consumer Dynamics
OVERVIEW
Table 33: Summary of Responses Regarding Financial Services on the Internet
(% of all respondents agreeing, % of Internet users agreeing and rankings
by level of agreement), July 2008
Summary of Survey Findings Among Internet Users
ONLINE PAYMENTS
S1: “I Prefer to Contact My Bank Online to Make a Payment”
S2: “I Prefer to Contact My Building Society Online to Make a Payment”.
Table 34: Online Payments — Those Who Prefer to Contact Their Bank or
Building Society Online to Make a Payment (% of Internet users agreeing), July 2008
PERSONAL LOANS
S3: “When I Want a Personal Loan, I Compare Offers on the Internet First”
S4: “It Is Easier to Get a Personal Loan Over the Internet Than to Negotiate Face to Face” ..
Table 35: Personal Loans — Those Who Compare Offers on the Internet First,
and Those Who Believe It Is Easier to Get a Loan Online Rather Than Negotiate
Face to Face (% of Internet users agreeing), July 2008
MORTGAGES
S5: “When I Am Looking For a Mortgage, I Compare Offers on the Internet First”
S6: “It Is Easier to Get a Mortgage Over the Internet Than to Negotiate Face to Face”
Table 36: Mortgages — Those Who Compare Offers on the Internet First,
and Those Who Believe It is Easier to Get a Mortgage Online Rather
Than Negotiate Face to Face (% of Internet users agreeing), July 2008
GENERAL INSURANCE
S7: “When I Am Looking For Insurance For My Car, Home or
Other General Purposes, I Compare Offers on the Internet First”
S8: “When I Am Looking For Insurance For My Car, Home or
Other General Purposes, I See or Telephone a Broker or Agent”
Table 37: General Insurance — Those Who Compare Offers
on the Internet First, and Those Who See or Telephone a Broker or Agent
(% of Internet users agreeing), July 2008
LIFE INSURANCE AND PERSONAL PENSIONS
S9: “When I Am Looking For Life Insurance or For a Personal Pension,
I Compare Offers on the Internet First”
S10: “When I Am Looking For Life Insurance or For a Personal Pension,
I Prefer to Visit a Broker or Financial Adviser”
Table 38: Life Insurance and Personal Pensions — Those Who Compare Offers
on the Internet First, and Those Who Prefer to Visit a Broker or Financial Adviser
(% of Internet users agreeing), July 2008
SAVINGS AND INVESTMENTS
S11: “When I Am Considering Savings or Investments,
I Compare Products on the Internet First”
S12: “When I Am Considering Savings or Investments,
I Rely on a Financial Adviser Face to Face”
Table 39: Savings and Investments — Those Who Compare Products
on the Internet First, and Those Who Rely on a Financial Adviser Face to Face
(% of Internet users agreeing), July 2008
S13: “I Like to Manage My Savings or Investments
on the Internet”
Table 40: Savings and Investments — Those Who Like to Manage Their
Savings or Investments on the Internet (% of Internet users agreeing), July 2008
ADVANTAGES OF ONLINE FINANCIAL SERVICES
S14: “I Think That Online Financial Services Offer a More Efficient Service”
S15: “I Think That Online Financial Services Offer a Cheaper Service”
Table 41: Advantages of Online Financial Services — Those Who Think That
They Offer a More Efficient Service, and Those Who Think That They
Offer a Cheaper Service (% of Internet users agreeing), July 2008
S16: “I Think That Online Financial Services Offer a Faster Service”
Table 42: Advantages of Online Financial Services — Those Who Think That
They Offer a Faster Service (% of Internet users agreeing), July 2008
IDENTITY THEFT AND SECURITY ISSUES
S17: “I Worry About Identity Theft or Security When Considering Using
the Internet For My Financial Affairs”
Table 43: Those Who Worry About Identity Theft or Security When Considering
Using The Internet For Their Financial Affairs (% of Internet users agreeing), July 2008
INTERNET-BASED PERSONAL LOANS NETWORKS
S18: “I Would Consider Using an Internet-Based Personal Loans Network
Between Individuals Where Lenders and Borrowers Are Impartially Screened,
and Where Interest Is Paid Direct to the Lending Individuals”
Table 44: Those Who Would Consider Using an Internet-Based Personal Loans
Network Between Individuals (% of Internet users agreeing), July 2008
IMPORTANCE OR OTHERWISE OF FACE-TO-FACE CONTACT
S19: “I Do Not Think Customer Face-to-Face Contact Is Important Any More”
Table 45: Those Who Do Not Think That Customer Face-to-Face Contact
Is Important Any More (% of Internet users agreeing), July 2008
ONLINE MONEY SUPERMARKETS
S20: “I Enjoy Using Online Money Supermarkets”.
Table 46: Those Who Enjoy Using Online Money Supermarkets
(% of Internet users agreeing), July 2008
14. Company Profiles 183
ABBEY NATIONAL PLC
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Advertising
Profitability
Table 47: Financial Results for Abbey National PLC
(£000, % and ratio), Years Ending 31st December 2005-2007
Future Company Developments
AVIVA PLC
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Advertising
Profitability
Table 48: Financial Results for Aviva PLC (£000, % and ratio),
Years Ending 31st December 2005-2007
Future Company Developments
BARCLAYS PLC
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Profitability
Table 49: Financial Results for Barclays PLC (£000, % and ratio),
Years Ending 31st December 2005-2007
Future Company Developments
THE CO-OPERATIVE BANK PLC
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Advertising
Profitability
Table 50: Financial Results for The Co-operative Bank PLC (£000, % and ratio),
53 Weeks Ending 14th January 2006, and Years Ending 13th January 2007
and 12th January 2008
Future Company Developments
HSBC HOLDINGS PLC/HSBC BANK PLC
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Advertising
Profitability
Table 51: Financial Results for HSBC Bank PLC
(£000, % and ratio), Years Ending 31st December 2005-2007
Future Company Developments
ICICI BANK UK PLC
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Advertising
Profitability
Table 52: Financial Results for ICICI Bank UK PLC
($000, % and ratio), Years Ending 31st March 2006-2008
Future Company Developments
ING DIRECT
Corporate Strategy
Strengths and Weaknesses
New Product and Brand Development
Distribution
Advertising
Profitability
Table 53: Financial Results for ING Group (€000 and %),
Years Ending 31st December 2005-2007
Future Company Developments
KAUPTHING SINGER & FRIEDLANDER (TO OCTOBER 2008)
Corporate Strategy
Strengths and Weaknesses
Product and Brand Development
Distribution
Profitability
LLOYDS BANKING GROUP PLC (LLOYDS TSB/HBOS MERGER)
Corporate Strategy
HBOS
Lloyds TSB
Strengths and Weaknesses
HBOS
Lloyds TSB
New Product Development
Brand Development
Distribution
Advertising
Profitability
Table 54: Financial Results for HBOS PLC (£000, % and ratio),
Years Ending 31st December 2005-2007
Table 55: Financial Results for Lloyds Banking Group PLC (£000, % and ratio),
Years Ending 31st December 2005-2007
Future Company Developments
NATIONWIDE BUILDING SOCIETY
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Advertising
Profitability
Future Company Developments
THE ROYAL BANK OF SCOTLAND GROUP PLC
Corporate Strategy
Strengths and Weaknesses
New Product Development
Brand Development
Distribution
Advertising
Profitability
Table 56: Financial Results for The Royal Bank of Scotland Group PLC
(£000, % and ratio), Years Ending 31st December 2005-2007
Future Company Developments
15. The Future
THE ECONOMY
Government Policy
Currency Risk
Gross Domestic Product
Table 57: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2008-2012
Inflation
Table 58: Forecast UK Rate of Inflation (%), 2008-2012
Unemployment
Table 59: Forecast Actual Number of Unemployed Persons
in the UK (million), 2008-2012
SECURITY
DEMOGRAPHICS
Table 60: Forecast UK Resident Population by Sex (000), Mid-Years 2008-2012
MARKET FORECASTS
Table 61: Forecast Total Number of UK Users of Financial Services Sites
on the Internet by Sector (million users), 2009-2013
Figure 10: Forecast Total Number of UK Users of Financial Services Sites
on the Internet (million users), 2009-2013
CONCLUSION
16. Further Sources
Associations
Publications
General Sources
Government Publications
Other Sources
Sources
-Abbey National Plc
-Aviva Plc
-Barclays Plc
-The Co-Operative Bank Plc
-Hsbc Holdings Plc/Hsbc Bank Plc
-Icici Bank Uk Plc
-Ing Direct
-Kaupthing Singer & Friedlander
-Lloyds Banking Group Plc
-Nationwide Building Society
-The Royal Bank Of Scotland Group Plc
Product Samples
A sample for this product is available. Please Login/Register to download this sample.
Customers who bought this item also bought
All rights reserved. © Copyright 2013 Research and Markets WWW5
Terms and Conditions Privacy Policy Publishers Employment Opportunities Site Map Link to us Webmaster Affiliate Network
